Funding Your Surgery

I know many of you are having to deal with the insurance companies of which can be a huge problem. In my case Aetna will not cover Lap Band. Gastric Bypass they will, but I prefer to go banded. You may have other options by taking a loan on your 401K funds. What is nice about funding from your 401K is the interest on the loan goes into your 401K plan.

Another option is to file for a Medical Hardship Withdraw. The withdraw does not require you to pay it back, secondly because your funding a medical procedure you are not penalize for taking the funds from your 401K. Like any funds this money will need to be reported as income and will need to pay taxes on the funded amount at the end of the year.

In taking a Medical Hardship Withdraw many 401K plans require the user to take out two 401K loans on your monies in order to qualify for a Medical Hardship Withdraw. If this is the case the minimum loan amount most plans allow is $1000.00 and you would need to do this twice in order to qualify for the Medical Hardship Withdraw. Most plans allow you to take out these loans all in the same week and then apply for the Medical Hardship Withdraw once you receive the two loans. Remember you will need to pay back the two loans. You could simply take the two checks you receive as loans, cash them, and pay back the loans within weeks of receiving and after you receive the Medical Hardship Withdraw check.